Deal Flow Study

Objective of Study
Provide stakeholders with a shared understanding on the strength and make-up of technology deal flow across sectors and regions in Alberta.


Definition of Deal Flow
The stream of business proposals, pitches and investment offers that venture capital, angel and private equity investors identify and engage with on a daily basis.

Strong deal flow is an indicator of a thriving ecosystem, strong economy and healthy capital markets.  However, it is often difficult to track for several reasons: investors treat their deal flow as confidential and may be hesitant to share with others as it is seen as an important competitive advantage; deal flow knowledge is highly compartmentalized within organizations; and organizations with consistent visibility into deal flow are typically limited to a particular sector or geographic region. This lack of a shared understanding around deal flow has a detrimental impact on businesses and communities, through duplication of efforts, inefficient use of resources and lost opportunities. Alberta Enterprise is uniquely positioned to lead this study due to its strong ties to the best sources of deal flow information, including early-stage technology investors and partnerships with many of the organizations that support, serve and advise technology companies.


Alberta Deal Flow Study 2016 – Growth Speeds up for Alberta’s Tech Startup Space
The recently released 2016 Alberta Deal Flow Study by Alberta Enterprise Corporation signals strong growth for one of Canada’s early stage technology startup regions and attractive opportunities for venture capital. There are 1,373 technology companies headquartered in Alberta, up 48% from 2012 when the last deal flow study was done. Startup activity is mainly concentrated in the province’s two largest cities. Calgary has seen a 55 % increase in technology companies over the last 4 years and Edmonton has seen a 39% increase.

Highlights from the study include:

  • Clean tech, industrial hardware & materials, and software categories all showed significant growth from 2012 to 2016.
  • Software represents 54% of deal flow in Alberta in 2016, up from 49% in 2012 with the number of software companies increasing 61% from 456 companies to 735 over the same period of time.
  • 1 in 5 technology companies reported over $1 million in annual revenue.
  • A third of the companies surveyed have raised over $1 million to date.
  • 10% of the surveyed tech companies’ last round was Series A.
  • Seven in ten tech companies have at least one founder with previous startup experience.

This is an exciting time of growth for investors and technology companies in Alberta. Recent announcements from the Government of Alberta, including the April 14th 2016 budget announcement, has promising news with the 30% investor tax credit encouraging investment in small and medium sized businesses in non-traditional sectors, the small business tax rate cut from 3% to 2% which will favour startups, as well as an increased commitment to Alberta Enterprise Corporation of $75 million. This follows the $1.5 billion allocated to ATB Financial to stimulate small business growth in Alberta and $500 million to the province’s investment management corporation, AIMCo, for investment in growth companies. Alberta Enterprise is helping to build a more sustainable, diversified technology industry in Alberta, one where home-grown innovation is encouraged and technology entrepreneurs have greater access to venture capital. The 2016 Alberta Deal Flow Study is a collaborative effort, including data from over 50 stakeholders who promoted the survey.

To read the Deal Flow Study, click here.
To sign up for updates at: info@alberta-enterprise.ca
If you have questions about the study, please contact Alberta Enterprise Corporation at info@alberta-enterprise.ca


Alberta Deal Flow Study 2012

We invited over 200 organizations to participate in the 2012 study, and were pleased to see such a strong response. Participants included industry leaders from across the spectrum, including: Venture Capital funds, formal angel investor groups, Limited Partner investors, research and technology commercialization organizations, universities, business incubators, consultants and advisors, industry associations and forums, and selected individuals. The participation of such diverse organizations ensured this was a highly collaborative effort, providing as accurate and meaningful results as possible.

We hope that you find some interesting insights into Alberta’s deal flow and that this information helps your organization to continue to serve, support, or fund promising companies in our technology industries.

To view the Alberta Deal Flow Study click here.